Design biases in tests for prospect theory using Dutch value-of-time data.

Author(s)
Kouwenhoven, M. Bucci, P. & Jong, G. de
Year
Abstract

The Stated Preference (SP) data of the Dutch national value-of-time surveys of 1997 and 1988 have been analysed by several authors. These studies revealed several indications that are consistent with the predictions of prospect theory: time and cost coefficients are different for time savings and time losses, and these coefficients are also different for small and large changes. In addition, significant inertia terms for time and cost havebeen found. It was investigated up to which level this unexpected behaviour is caused by the specific SP design of these surveys. This was done by simulating choices by respondents assuming utility functions that are bothlinear in time and cost (and no prospect theory is assumed). Then, the simulated data were analysed in the same way as the observed data had been analysed. The simulated data showed no indication of any significant inertia terms, and no indications of any differences in the estimated coefficients between gains and losses or between small and large changes. Therefore,no evidence of a design bias in these surveys was found. For the coveringabstract see ITRD E145999

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Publication

Library number
C 49511 (In: C 49291 [electronic version only]) /72 / ITRD E157116
Source

In: Proceedings of the European Transport Conference ETC, Leeuwarden, The Netherlands, 6-8 October 2008, 1 p.

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